The company has yet to make a quarterly profit since launching services in 2008 and has struggled to compete against better-resourced rivals Saudi Telecom Co (STC) and Etihad Etisalat (Mobily).
Zain Saudi, 37-percent owned by Kuwait's Zain, made a net loss of 316 million riyals ($84.23 million) in the three months to Sept. 30. This compares with a net loss of 421 million riyals in the prior-year period. Analysts polled by Reuters on average forecast Zain Saudi would make a quarterly loss of 329.7 million riyals.
Zain Saudi attributed its narrowing quarterly loss to improved margins, rising demand for Internet services and lower provisions.